Was it easy? No. Was it part of a dangerous hostage crisis that didn’t have to happen? Yes. Should anyone fully exhale before the package is signed into law before the x-date deadline that is less than a week away? Certainly not. But Democratic and Republican leaders set out to reach a budget agreement, and as NBC NewsKey negotiators struck an agreement in principle Saturday night to extend the debt ceiling and avert a catastrophic default, just days before the Treasury Department said the U.S.
But as the dust settles on the weeks-long negotiating process, let’s pause to take stock of where things currently stand.As part of the agreement, the debt ceiling will be suspended until Jan. 1, 2025, at which point the Treasury Department would start using “extraordinary measures” to pay the nation’s bills — a process involving moving money around to prevent default — for several months. As for the budget, negotiators agreed to relatively modest spending caps for two years.
Also note, the parties agreed to make it easier for certain energy projects to get permits, and in an apparent nod to Sen. Joe Manchin, the package includes approval of a new gas pipeline in the conservative Democrat’s home state of West Virginia.Effectively, yes, though budget arithmetic can get a little tricky.
More specifically, funding for the military, veterans care, and entitlement programs such as Social Security and Medicare would not be cut under this agreement.
GOP hardliners went into this process with a ridiculous wish list and high expectations that they’d walk out big winners. That clearly hasn’t happened. Indeed, many of the conservative elements in the package likely would’ve been part of a bipartisan budget deal this year, whether Republicans launched a debt ceiling hostage crisis or not.“ of his conference is on board with the agreement.